Government Plans Major Changes to Council Tax System
The UK government is proposing significant reforms to make council tax payments more manageable and debt collection less aggressive. Here’s what you need to know about the upcoming changes:
Key Changes to Council Tax Payments
✔ 12-Month Payment Plans by Default
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Currently: Most pay over 10 months (with optional 12-month plans)
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New system: Default 12-month payments
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Benefit: Reduces monthly payments (e.g., £38 less per month for Band D)
✔ Softer Debt Collection Rules
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Current system: Missing one payment can trigger demand for full year’s tax
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New proposal: Slower escalation to bailiffs & lower court fees
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Martin Lewis: “No commercial lender is allowed to behave like this”
✔ Easier Council Tax Band Challenges
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Consultation includes reassessing tax bands
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Goal: Make it simpler to check if your home is overcharged
Why Are These Changes Happening?
The government says the reforms will:
✅ Prevent debt spirals for struggling households
✅ Reduce aggressive bailiff action
✅ Make bills more predictable with smaller monthly payments
Martin Lewis (MoneySavingExpert) welcomed the move:
“The current system is broken. I’m delighted the government is finally acting.”
What Happens Next?
🔹 Consultation open for public feedback
🔹 No confirmed start date yet
🔹 Annual tax amount stays the same (just spread differently)
